web analytics
March 5, 2015 / 14 Adar , 5775
At a Glance
InDepth
Sponsored Post


Home » InDepth » Op-Eds »

Israel’s Credit Rating Reaffirmed

Straight from the Jerusalem Board Room: An optimistic report on Israel's economy from from Yoram Ettinger.
Israel great credit

Photo Credit: Yori Yanover

1.  Israel’s credit rating has been reaffirmed at A+ by “Standard and Poor,” at a time when S&P lowers the credit rating of an increasing number of Western countries.  According to S&P:

the Israeli economy continues to generate solid economic growth and enjoy a net external asset position, even though the current account has temporarily turned negative. The stable outlook reflects our view that there is sufficient political will to prevent a sizable increase in the government’s debt burden, and that major security risks will be contained. 

S&P noted that “there has been fiscal slippage on account of lower government revenues,” but added, “recent austerity measures and current growth levels should ensure that debt ratios modestly improve in the medium term.

Referring to the most important economic development in Israel in recent times, the discovery of large offshore gas reserves, S&P said, “We forecast that by the middle of the decade domestic natural gas production should contribute to improved external and fiscal balances” (Globes Business Daily, September 30, 2012).

2.  Israel’s GDP grew by 3.4% during the 2nd quarter of 2012, compared with 3.1% and 3.2% during the 1st quarter of 2012 and the 4th quarter of 2011 (Globes, Sept. 20) . While unemployment trends upward towards 7% – which is significantly lower than OECD countries – housing demand peaked in August, to a 13 year record (Globes, Sept. 28).

Israel’s export is impacted by the global meltdown in general and Europe’s intensified economic crisis in particular.  However, while export to Europe declined by 21% during July-August, 2012, compared with July-August, 2011, export to the U.S. surged by 16% during the same period and by 31% compared with May-June, 2012.  Total export ($7.7BN) decreased by 3.5% during July-August, 2012 (Israel Hayom, Oct. 3).

3.  According to the 2012 OECD report, Education at Glance, Israel is ranked 2nd in the number of adults (25-64 year old) with academic degrees, trailing Canada, but ahead of all other OECD countries (Israel Hayom, Sept. 12).

4.  eBay CEO John Donahoe at Israel’s Advanced Technology Conference in Jerusalem (Bloomberg, Sept. 11):  the Israel R&D centers of eBay and its subsidiary PayPal will continue to help drive the company’s innovation in commerce and payment in the foreseeable future. Those centers are based largely on Israeli start-ups acquired by eBay, including Shopping.Com, The Gifts Project and Fraud Sciences. Those centers, employing 340 people, work on everything from EBay’s global social activities to cataloging and data to search mechanisms as well as security and risk management.  Donahoe is looking forward to partnering with more Israeli entrepreneurs to help further spur the future of retail and commerce.

5.  Cisco Systems, the Silicon Valley-based Greylock Partners and the Englewood, CO-based Liberty Global participated in the $24MN 5th round of private placement by Israel’s Celeno (Globes, Sept. 28).

Kazakhstan’s Kenges Rakishev invested $20MN in Israel’s Mobli.  Additional investors in Mobli are Leonardo DiCaprio, Tobey McGuire and Serena Williams.

In August, Rakishev invested $5MN in Israel’s TriPlay (Globes, September 20). The Radnor, PA-based New Spring Capital, the Menlo Park, CA-based Menlo Ventures and the Palo Alto, CA-based Trident Capital participated in a $12MN 3rd round by Israel’s eXelate (Globes, Sept. 25). Switzerland’s ABB will invest $10MN in an Israeli solar project (Globes, Sept. 3). Motorola Solutions led a $4MN round by Israel’s AgentVi (Globes, Sept. 12).

Visit the Ettinger Report

About the Author: Ambassador (ret.) Yoram Ettinger is consultant to Israel’s Cabinet members and Israeli legislators, and lecturer in the U.S., Canada and Israel on Israel’s unique contributions to American interests, the foundations of U.S.-Israel relations, the Iranian threat, and Jewish-Arab issues.


If you don't see your comment after publishing it, refresh the page.

Our comments section is intended for meaningful responses and debates in a civilized manner. We ask that you respect the fact that we are a religious Jewish website and avoid inappropriate language at all cost.

If you promote any foreign religions, gods or messiahs, lies about Israel, anti-Semitism, or advocate violence (except against terrorists), your permission to comment may be revoked.

One Response to “Israel’s Credit Rating Reaffirmed”

  1. Tim Upham says:

    The problem is that the Israeli economy continues to grow, and it credit rating is increased. But this economic euphoria could very easily be threatened by the Palestinian economic collapse. Israel exports over U.S. $3 billon dollars worth of commodities to Areas A, B, and C, of the West Bank. If there was a Palestinian economic collapse, Israel would not be able to decouple from it. The Israeli-Palestinian economies are linked by an economic umbilical cord. The best thing to do, is to make the West Bank and Gaza into an independent Palestine, so it could apply for multi-lateral assistance from the World Bank and International Monetary Fund. This would assist in building up the Palestinian economy, and make it into an equal trading partner with Israel.

Comments are closed.

Current Top Story
Megillat Esther
The Origins of Purim
Latest Indepth Stories
Ron Prosor

Values at the very heart of the UN are threatened by extremist ideologies targeting our way of life

Ayatollah Ali Khamenei

Anti-Semitism today focuses on Israel and the quest to delegitimize it.

Ballots for elections "made in Samaria."

Any Jew who ties his fate to Israel should be able to vote in Israel’s elections-even before aliyah

A young Moshe Meir Weiss introduces his mother, Mrs. Agnes Weiss Goldman, to Rav Moshe in 1979.

There were no airs about him. Rav Moshe was affectionately known as the Gaon of Normalcy.

Israel’s full sovereignty over a united Jerusalem is the only path for true peace in the region.

Just like Moses and Aaron, Mordechai decides to ruin the party…

The president has made clear – I can’t state this more firmly – the policy is Iran will not get a nuclear weapon.

Obama has an apparent inability to understand Islam in particular and Mid-East culture in general

Pesach is a Torah-based holiday whose fundamental observances are rooted in Torah law; Purim is a rabbinic holiday whose laws and customs are grounded in the rabbinic tradition.

In honor of Prime Minister Netanyahu’s successful speech before Congress.

Mr. Spock conveys a message with painfully stark relevance to our world today, especially in the context of PM Netanyahu’s speech to Congress.

Obama created the “partisan politics” by asking Dem. party members to avoid Bibi and his address

Enough is enough. The Jewish community has a big tent, but the NIF should have no place in it.

I vote for the right and get left-wing policy. Every. Frigging. Time.

More Articles from Yoram Ettinger
Netanyahu carried his message to Americans through the media after meeting with President Obama and castigating Iran at the UN. (September 30, 2013)

Netanyahu addresses a clear, present & lethal threat to the US/Israel/WORLD; NOT political bickering

Israel is #2 most innovative country in the world attracting numerous global companies and investors

In recent years, the US-Israel relation has been transformed into a mutually-beneficial 2 way-street

A nuclear Iran compounds the clear&present lethal threat Iran poses to critical US&Western interests

Despite Western ‘Conventional Wisdom&PC,’ the Arab/Israeli conflict was never about the Palestinians

The West’s policy-making ambiguity and denial could trigger national and international calamities.

Despite claims that Israel is “isolated,” 2014 was a record year for foreign investment in Hi-Tech

Printed from: http://www.jewishpress.com/indepth/opinions/israels-credit-rating-reaffirmed/2012/10/05/

Scan this QR code to visit this page online: